There are limited information on how an artificially non-liquefiable soil layer created by ground improvement beneath shallow foundations can help the reduction of liquefaction induced foundation settlements and the deterrence of bearing capacity failure effectively. This is addressed herein, numerically through a three-dimensional finite difference model using FLAC^3D. The validity of the developed model was evaluated by comparing the results obtained from the model with the results of numerical studies and experimental centrifuge tests available in the literature. Using the validated model, the seismic response of a shallow foundation including bearing capacity and settlement was evaluated parametrically over a single DSM column in terms of its diameter and depth and also DSM group columns in terms of the diameter of columns and their center-to-center distance. Afterward, the influence of shallow foundation characteristic parameters was evaluated including thickness, width and embedded depth on the seismic response of shallow foundations over liquefiable soils improved by DSM columns. The obtained results can be used in practical engineering applications and provide new insight into the seismic performance of shallow foundations with DSM columns located over liquefiable soils.